Africa Economy - September 2017

Source: OPEC 9/20/2017, Location: Africa

Two large African economies posted encouraging GDP growth in 2Q17. In Nigeria, the GDP saw 0.6% y-o-y growth in 2Q17, following five quarters of recession, according to the National Bureau of Statistics.

In South Africa, the GDP grew at its fastest pace since 3Q15 in 2Q17. Growth stood at 0.8% y-o-y, up from 0.2% in the previous quarter. Private consumption increased by a notably faster pace of 1.7% y-o-y to reach its highest point since 4Q15. Public consumption slightly increased by 0.1% y-o-y in 2Q17 vs a 0.3% contraction posted the previous quarter. The GFCF, on the other hand, remained in contraction territory in 2Q17. Trade was not supportive of growth in 2Q17, as exports declined by 0.6% y-o-y from growth of 0.7% in 1Q17, while imports increased by 4.7% y-o-y in 2Q17, up from 0.6% in the previous quarter.

In Egypt, the pound slightly appreciated by 0.9% m-o-m in August against the dollar after accumulating depreciation of nearly 95% from November 2016 through to April 2017. Inflation continued posting readings north of 30% for the sixth consecutive month in July and is expected to rise further in the coming months due to a recent reduction in subsidies for some fuel/energy items and public services. The country’s non-oil private sector markedly improved in August as suggested by its respective PMI due to an increase in new orders from abroad and the weakest decline in output. The index registered 48.9 in August, up from July’s 48.6.